Chapter Objectives After reading this chapter you should be able to Describe the four major traditional advertising media newspapers magazines radio and television Discuss the strengths and weakness for each of the following major traditional advertising media newspapers magazines ra ID: 365750
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Traditional Advertising MediaSlide2
Chapter Objectives
After reading this chapter you should be able to:Describe the four major traditional advertising media (newspapers, magazines, radio, and television).
Discuss the strengths and weakness for each of the following major traditional advertising media: newspapers, magazines, radio, and television.
Describe how each of these traditional media choices has changed with the appearance of new media options (e.g., social media, online advertising).
Appreciate the research methods that are used for each ad medium to determine the size of the audience exposed to advertising vehicles.
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Has TV Advertising Lost its Effectiveness? Or, Has it Simply Changed its Look?
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Major Mass Advertising Media
Spending on measured media advertising in the four traditional media in the United States totaled approximately $121 billion, and $300 billion for all media – measured and unmeasured – in 2012.Approximate spending percentages by major media type:
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Which Advertising Medium Is “Best”?
Advertiser’s
Objectives
Creative
Needs
Competitive
Challenge
Available
Budget
Factors in the Choice
of Best Advertising
Media
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Newspapers
Readership48 million U.S. households during the week and nearly 49 million on Sundays.Historically, the leading medium, but in constant decline
Buying Newspaper
Space
Standardized Advertising Unit (SAU) system1 column: 21/16 inches 2 columns: 41/4 inches3 columns: 6
7
/
16
inches 4 columns: 8
5
/
8
inches
5 columns: 10
13
/
16
inches 6 columns: 13 inches
Space depth: 1 inch to 21 inches
Space rates apply to ROP (run of press)
Premium rates for preferred space positioning
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Newspaper Advertising’s Strengths and Limitations
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Magazines
Special Interest MagazinesConsumer-orientedBusiness-orientedStandard Rate and Data Service (SRDS Media Solutions)Tracks information on standardized ad rates, contact information, reader profiles, and other information, which facilitates media planning and buying.8Slide9
Magazines (cont’d)
Buying Magazine SpaceSelecting magazines that reach the target marketSources for cost considerationsMedia KitsDemographic composition of magazine’s readershipRate cardsCPM (Cost-per-thousand)
Information
Mediamark
Research, Inc. (MRI)Simmons Market Research Bureau (SMRB)9Slide10
Figure 12.1: Golf Digest’s Demographic Profile
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Figure 12.2: Partial Rate Card for Sports Illustrated
(Rate base = 3,150,000)11Slide12
Magazine Advertising’s Strengths and Limitations
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Magazines (cont’d)
Magazine Audience MeasurementMagazine subscriptions and the number of people who read a magazine are not equivalent:Variety of intermediaries collecting subscription makes it difficult to obtain an accurate count of subscribersSingle copy purchases and publicly-available copies thwart identification of readersSubscribers who share magazines with others
Simmons and MRI Reports
Specialists in measuring magazine readership and determining audience size.
Each uses different research methods13Slide14
Illustration of a MRI Report for Imported Beer/Ale
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Magazines (cont’d)
Considerations in selecting magazines: The size of the potential audience that a vehicle might reach The attractiveness of its coverage as revealed by the total product purchasers exposed to that vehicle and compared with other mediaIts cost compared with other vehiclesIts appropriateness for the advertised brand15Slide16
RadioMarket Coverage
There are 14,503 commercial radio stations in the United StatesAlmost 100 percent of all homes have radios; most homes have severalVirtually all cars have a radioMore than 50 million radios are purchased in the United States each yearRadio broadcasting in the United States reaches slightly over 93 percent of all people age 12 or older.
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Radio (cont’d)
Factors in Buying Radio TimeMatching station format with target marketChoosing a station with geographic coverage in areas of dominant influence (ADIs)Daypart choices:Morning drive: 5 AM to 10 AMMidday: 10 AM to 3 PMAfternoon drive: 3 PM to 7 PMEvening: 7 PM to Midnight
Late night: Midnight to 7 AM
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Radio Advertising’s Strengths and Limitations
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Radio (cont’d)
Radio Audience Measurement FirmsArbitronIs the major company involved with measuring listenership and audience demographics.Owns RADAR (Radio’s All Dimension Audience Research) Uses a paper-based diary approach to measure listener behavior and is introducing pager-like meters (Portable People Meters) to its data collection process
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TelevisionTelevision
Over 98% of all households have televisionsIs a uniquely personal and demonstrative mediumIs expensive to produce and broadcastTelevision Programming Dayparts:Early morning: 5 AM to 9 AMDaytime: 9 AM to 4 PM
Early fringe: 4 PM to 7 PM
Prime access: 7 PM to 8 PM
Prime time: 8 PM to 11 PMLate fringe: 11 PM to 2 AMOvernight: 2 AM to 5 AM20Slide21
Average Prime-Time Audience (in millions) for Six Major Networks
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Types of Television Advertising
Spot
Network
Local
Cable
Syndicated
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Television Messages
Network
Advertising
Useful when selling a product nationally on major networks
Expensive, but is a cost-efficient means to reach mass audience
Spot Advertising
Advertising is placed only in selected markets
Regional-oriented marketing and geodemographic segmentation of consumer markets
Syndicated
Programming
Occurs when an independent company sells a show to as many network-affiliated or cable TV stations as possible
Cable Advertising
Uses narrowcasting to reach 85% of all households of
economically upscale and young subscribers
Local Advertising
Local advertisers are turning to television as it is inexpensive during the fringe time
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The 10 Highest-Priced TV Programs (Fall 2010)
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Television Advertising’s Strengths and Limitations
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Top-10 Prime-Time Broadcast TV Programs
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Television Advertising (cont’d)Infomercials
Were introduced in the early 1980sAre essentially a long commercial (28 to 30 minutes)Are expensive to produceAre an especially effective promotional tool for moving merchandise27Slide28
Television Advertising (cont’d)
Brand Placements in TV ProgramsCan be very effective provided brand is displayed in a context that appropriately matches the brand’s image.Are the result of advertisers’ fear that TV advertising is no longer as effective as it used to beRequire that brand managers pay to get prominent placement for their brands in popular programs28Slide29
Television Advertising (cont’d)
Television Audience MeasurementHigher rated programs command higher ad pricesRatings are difficult to come by accuratelyNational (Network) Audience MeasurementNielsen’s People Meter TechnologyLocal Audience MeasurementNielsen’s Diary PanelsNielsen’s Local People MetersChallenges
Counting away-from-home viewers and listeners
Audience undercounts
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Figure 12.3: Nielsen People Meter
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